Two large developments in Singapore have returned to the collective sale market at reduced prices, as property owners test confidence in the sector despite a slow start to the year. Serenity Park on Tamarind Road and Pek Chuan Building on Lavender Street both launched exclusive tenders earlier this week, exclusively marketed by Mount Everest Properties. The condo seeks a second sale attempt, while the commercial building looks for a third.
Serenity Park cuts reserve price by nearly 13%
The new reserve price of $440 million represents a drop of about 12.9%, lowering the valuation to $1,266 psf. The 179-unit development sits on a 248,173 square foot site with a plot ratio of 1.4. If redeveloped, the new project would be capped at five storeys. The site sits in a low-rise landed estate and is near educational institutions including Rosyth School and Anderson Serangoon Junior College.
Owners are betting that a lower price point will attract developers looking to add suburban freehold sites to their land banks. The private treaty exercise closes on September 30. In this segment of the market, freehold land often carries a higher premium than leasehold alternatives, making the pricing strategy a deliberate move to clear the hurdle of valuation uncertainty that has slowed other deals this year.
Pek Chuan Building offers flexibility for a mixed-use project
Pek Chuan Building presents a different proposition. The 99-year leasehold site on 116 Lavender Street has a gross floor area of 71,750 square feet across four storeys. It includes retail units on the first to third floors and office space on the fourth. The reserve price has been lowered to $77 million, down from $80 million, or $1,073 psf based on a plot ratio of 2.5. The building has about 56 years of lease remaining.
Under the Master Plan, the site is zoned for commercial use and can rise to a height of 12 storeys. Marketing agents suggest the new owner might seek a change of use for redevelopment, potentially developing a hotel or a mixed-use project. The location near Bugis Junction, SMU, and Nanyang Academy of Fine Arts offers access to a dense cluster of retail, education, and hospitality options. Public transport nodes including Bendemeer and Lavender MRT stations are nearby.
Market adjustments and legislative changes
Despite the reduced valuations, these two sales attempts reflect broader trends in the market. The second half of 2026 has brought significant legislative adjustments that may influence future collective sales. From July 29, the Additional Buyers Stamp Duty (ABSD) regime was adjusted for eligible developers. To qualify for a 35% upfront remission on ABSD, developers must now meet strict development timelines. New rules extend these timelines to up to seven years for mega developments exceeding 1,400 units and six years for large sites yielding 700 to 1,399 units.
Another change took effect on September 8 with the passing of an amendment to the Land Titles (Strata) Bill 2026. This alteration lowers the consent threshold for collective sales. The threshold dropped from 80% to 70% for buildings aged 40 to 59 years, and to 65% for structures 60 years or older. For newer developments under 10 years, the threshold remains at 90%. These shifts may encourage owners of older properties to test the market for a collective sale.
Comparing distinct redevelopment propositions
Other developments are also testing the waters, including Trendale Tower. Serenity Park and Pek Chuan Building offer very different redevelopment options for potential buyers. The residential site in District 28 provides a large freehold plot which appeals to developers seeking a niche addition to their land bank. In contrast, the commercial site on Lavender Street offers a smaller city-fringe location with potential for alternative uses, such as a hotel or mixed-use development.
